Bank Guarantees

Ziraat Bank Montenegro AD offers a wide range of services to its customers, including documentary business, such as guarantees, collection and letters of credit.

Bank Guarantees

Guarantee is a commitment by which the Bank, on behalf of a customer, undertakes to pay the amount specified in the guarantee to a beneficiary, provided that the obligations under the guarantee have been met.

Bank guarantees can be classified under different criteria, e.g. according to the nature of contracted liability, terms of payment, guarantee subject matter, etc.

Bearing in mind the banking experience, the Bank offers the following guarantees, provided that the required documentation has been submitted and necessary procedures conducted:

Nostro guarantees

1. Performance Guarantees, the group of guarantees in which the Bank guarantees to the Beneficiary of the guarantee fulfilling of the actions undertaken by the Principal, namely:

  • Custom guarantee
  • Bid bond guarantee
  • Advance payment guarantee
  • Performance Guarantee or specific obligations and
  • Other performance guarantees.

2. Payment Guarantees - the most widely used form of guarantee for the safety of payments for purchase of goods issued by the Bank at the request of a Principal - the customer, in favour of the Beneficiary - the seller.

Loro guarantees

Guarantees received from foreign banks on behalf of their clients, where the Bank performs:

  • Receiving and advising (forwarding) received guarantees by the instructions of the guarantee bank
  • Advising of changes and monitoring guarantees received
  • Authentication of loro guarantees via SWIFT
  • Forwarding claims (protests) for the collection of guarantee

Guarantees are issued in accordance with the ICC Uniform Rules for Demand Guarantees models with patterns (URDG 758, Revision 2010).

Service users for issuance of guarantees and documentary letters of credit are solvent creditworthy clients of the Bank, dealing with export and import of goods and services to and from abroad as well as sale of goods and provision of services in the country.